Page 142 - China Mobile Limited - Annual Report 2012
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China Mobile Limited
Annual Report 2012
136
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
36 Capital, Reserves and Dividends (Continued)
(e) Capital management
The Group’s primary objectives when managing capital are to maintain a reasonable capital structure and to
safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders. The
Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher
shareholder returns that might be possible with higher levels of borrowings and the advantages and security
afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in
economic conditions. The Group monitors capital on the basis of total debt-to-book capitalization ratio. This ratio
is calculated as total debts (including bills payable, obligations under finance leases, current and non-current
interest-bearing borrowings as shown in the consolidated balance sheet) divided by book capitalization (refer to
the total equity attributable to equity shareholders of the Company as shown in the consolidated balance sheet
and total debts).
As at 31 December 2012, the Group’s total debt-to-book capitalization ratio was 4.0% (2011: 4.5%).
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
37 Related Party Transactions
(a) Transactions with CMCC Group
The following is a summary of principal related party transactions entered into by the Group with CMCC and its
subsidiaries (“CMCC Group”), for the year ended 31 December 2012 and 31 December 2011. The majority of
these transactions also constitute continuing connected transactions as defined under Chapter 14A of the Listing
Rules. Further details of these continuing connected transactions are disclosed under the paragraph “Connected
Transactions” in the Report of Directors.
2012
2011
Note
RMB million
RMB million
Telecommunications services revenue
(i)
2,113
1,709
Telecommunications services charges
(i)
1,580
1,138
Property leasing and management services charges
(ii)
785
776
Interest paid/payable
(iii)
161
219
Interconnection revenue
(iv)
253
279
Interconnection charges
(iv)
472
446
Network assets leasing revenue
(iv)
109
47
Network assets leasing charges
(iv)
2,950
328
Network capacity leasing charges
(v)
2,477
1,092
Revenue derived from cooperation of
telecommunications services
(vi)
341
177
Charges for cooperation of telecommunications services
(vi)
1,936
1,154
